IGas raises £18m in bond issue

IGAS Energy, the shale gas company which is attracting opposition at a test site in Salford, has raised £18m to fund its activities through a bond issue.

The unsecured bond, listed on the Oslo Alternative Bond Market, offers 10% interest and will mature in five years.

IGas, which is also active at Warrington and near Ellesmere Port, has a licence to explore for coal bed methane at Barton, but the site has become a target for campaigners who believe the company’s intention is to frack, or hydraulically fracture, for gas.

This controversial technique has been embraced by the Government which is offering tax breaks to companies like IGas and the other big player Cuadrilla Resources. But campaigners say the process – which involves pumping thousands of gallons of water mixed with chemicals into the earth – can cause air and water pollution.

A report published last month by the Government body Public Health England said said emissions from individual wells are low and unlikely to have an impact on air quality but the cumulative impact of a number of wells “may be locally and regionally significant”.